I am considering setting up a US company to trade through. The three ways of paying myself (the individual) from the company are: a. salary b. dividends c. loan from the company to myself If I did one of the first two, I would have to pay personal income tax. What are the US tax ramifications of the third option - loaning money to myself (individual) from the company?
Thanks for your reply funky. I read your thread and it seems to be more about non-US companies. Any ideas about the tax treatment (if any) of loans by US companies to shareholders?
i know that you can setup a c-corp and create a pension plan of any sort. then that pension can loan money out for purchases. but there is no legal way around paying taxes. maybe a way to defer them but this can be a very complicated structure, and thus very expensive and possibly prohibitive.